Australian Market Report of April 27, 2010: Shares Stronger on Metals Prices

The Australian shares opened higher on Tuesday despite most Asian markets dropped in early trade. Miners were boosted by stronger copper and gold prices. Most Asian markets yesterday rose as sentiment was improved after prospects of a European Union and the International Monetary Fund bailout for Greece. The Australian sharemarket was closed on Monday for a public holiday. In economic news today, the Australian Bureau of Statistics is due to unveil producer price indices (PPI) for March quarter. The National Australia Bank releases its business confidence survey for the March quarter.

Company News

Bank of Queensland Limited (ASX:BOQ) and CIT Group Inc. (NYSE:CIT) have entered an agreement under which the Australian bank will acquire CIT's Australia and New Zealand businesses. Bank of Queensland will buy CIT's vendor equipment finance business which operates in the IT and office market as well as in the motorcycle and power equipment markets. The transaction is expected to close in the second quarter of the 2010 calendar year. Bank of Queensland currently has an equipment finance book of approximately A$3.4 billion and the acquisition represents around 15 per cent of this book.

Blackthorn Resources (ASX:BTR) said today that the company and its joint venture partner BHP Billiton have mutually agreed on a Scope of Work for the Concept Study over the Mumbwa JV project in Zambia. The Concept Study is aiming to complete an initial investigation on the project to determine if a potential value creating opportunity exists that can be developed as an economically viable mining operation. BHP Billiton (ASX:BHP) will manage and fully fund this phase of exploration. BHP Billiton has selected Boart Longyear Drilling (ASX:BLY) as the preferred contractor to conduct drilling for the Phase 4 exploration and Concept Study.

Seven Network (ASX:SEV) has received court approval for the A$3 billion merger with privately-owned industrial equipment business WesTrac, Caterpillar's sole authorised dealer in WA, NSW and the ACT, as well as parts of northeast China. Seven Network shareholders last week also voted in favour of the deal.

Oil Search Ltd. (ASX:OSH) reported a sharp rise in first quarter revenue thanks to the recovery in the oil price, but its output was down on natural field decline and a scheduled maintenance shutdown. Revenue for the three months to March 31 jumped to US$133.9 million, up from US$68.6 million in same quarter 2009. Its output for the quarter ended March was 2.00 million barrels of oil equivalent (boe), compared with 1.90 million boe a year ago, but it was still 10 per cent lower than in the fourth quarter of 2009.


Related Companies

Seven Network Limited
        

Oil Search Limited
       

Boart Longyear Limited
        

Blackthorn Resources Limited
            

BHP Billiton Limited
         

Bank of Queensland Limited